The HM Revenue and Customs (HMRC) is targeting the UK’s wealthy middle classes in its clampdown on tax evaders.
HMRC has appointed a team of 100 extra investigators to probe the tax affairs of the ‘mass affluent’, who are professionals earning over £150,000 per annum or whose wealth ranks between £1m and £20m.
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The group comprises Britain’s wealthy middle classes such as doctors, dentists and lawyers.
The amount of extra tax recovered from this group soared by 60% to £137.2m in one year from £85.7m the previous year.
This marks a significant increase as compared to the amount of revenues recovered from ultra-wealthy tax evaders which jumped by only 20% to £268m.
James Bullock, head of litigation and compliance at law firm Pinsent Masons said, "This surge in extra revenue from Affluent Unit tax investigations serves as a reminder that HMRC is widening its lines of inquiry. It is no longer focusing solely on the super-rich. People who would just consider themselves moderately successful professionals and businesspeople are now also coming under the scrutiny of HMRC’s specialist units."
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By GlobalDataThe majority of this mass affluent group caught may not even realise that they have done anything wrong, or may have signed up to unfair schemes as recommended by their independent financial adviser, or may have filed errors in their tax returns.
Bullock added, "The affluent middle classes are less likely to move if they don’t like the decision whereas the super-rich tend to move about. The middle classes are professionals who can’t just leave; they have children who are settled, they have family commitments. Essentially they are a captive audience for HMRC."
